Question

Serrano, a clothing and apparel company, suffered major losses when one of its warehouses was destroyed in a fire mishap. In an attempt to make up for these losses, it had to sell one of its product lines to a rival company. Which of the following grand strategies was used by Serrano in this scenario?

The retrenchment strategySustainable competitive advantageCore capabilities

Answer 1

Answer: The retrenchment strategy

Step-by-step explanation:

The retrenchment strategy is one of the type of business strategy in which the different types of organizations are adopted this strategy for the purpose of minimizing the business operations so that the company become more financial stable.

The retrenchment strategy helps in increase the beneficial factors by selling various types of products and the services in the market.

According to the given scenario, the retrenchment strategy is basically used by the Serrano for the purpose of overcome from all the losses due to the fire mishap in the company.

Therefore, The retrenchment strategy is the correct answer.